A Study On Merchant Banking Awareness

A Study On Merchant Banking Awareness

March 18, 2020 Admin
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Merchant Banking is the financial institution committed to the credit union, merger and acquisition services, fundraising, portfolio services, publicity, and new issues, consulting services, promotion of ventures and project funding for large companies, high net worth individuals, and multinationals of corporations throughout the world.

The central purpose of the commercial banking industry is to make money, grow and modernize the sector, which essentially represents the country's overall economic growth. Basically, Merchant Banking is the combination of both consultation services and Banking. Merchant Banks mainly works with small businesses or start-ups that find difficulty in raising funds.


Merchant Banking Services in India:

Merchant Banking Services in India started with a Reserve Banking License issued in 1967 to the Grindlays bank. In 1983 they were much more popular when the main market thrived, where the companies began to discuss a new issue. Commercial banking activities are organized and carried out in various ways. Organized as public limited companies and registered as private limited firms, they are organized by commercial banks and foreign finance development institutions, nationalized banks, subsidiary companies, stockbrokers and consulting companies. Several commercial banks have collaborated through several subsidiaries internationally with international trading bankers.


Merchant Banking Firm

Merchant banking firm is one who indulges in business in the fields of issues management through trade arrangements or the subscription of shares, or through the position of manager/consultant, or through the provision of consulting services.


Activities performed by merchant banker are as follows:

  • Securities secret placement
  • Public stock management
  • Global supply management such as depository receipts, bonds, and so on.
  • Rupee word credit syndication
  • Brokerage of cash
  • Economic consulting services worldwide
A Study On Merchant Banking Awareness

Merchant banking services offered to the clients are as follow–

  • Project Counseling: A project Counseling system primarily work in three steps: Preparation of the project reports, identification of the right options for funding and evaluation with banks and financial institutions of the quality of project reports. It includes the completion of the application form and attempting to fund the project by loans or trusts.
  • Issue management: As the name implies, this includes issuing bonds, preferred shares, and debentures. The issuing of shares and liabilities to the general public acts as a partner to a high net worth client.
  • Underwriting services: Underwriting services are one of the main assets of a merchant banking service. A promise is given to the customer that the customer will pay the sum of the subscription is below a specified point.
  • Portfolio management: As previously mentioned this service invests on behalf of customers in various types of investments and also manages the entire investment.
  • Loan Syndication: Simply syndicating loans, the bankers give temporary loans to projects needing capital.

Merchant Banking Services at RESURGENT INDIA

Resurgent India is Category 1 Merchant banker licensed for assignments with the Indian Securities Exchange Board (SEBI). Resurgent India advisory services include securities and financial instruments assessment, loan syndication, sales, mergers and amalgamations, and business consultancy, appraisal and feasibility studies.

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